Financial Analysis: Swatch Group (OTCMKTS:SWGAY) vs. Kenvue (NYSE:KVUE)

Kenvue (NYSE:KVUE) and Swatch Group (OTCMKTS:SWGAY) are both large-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Profitability

This table compares Kenvue and Swatch Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kenvue	9.37%	20.06%	7.78%
Swatch Group	N/A	N/A	N/A

Valuation & Earnings

This table compares Kenvue and Swatch Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kenvue	$15.46 billion	2.31	$1.03 billion	$0.74	25.18
Swatch Group	$7.65 billion	2.85	$219.23 million	N/A	N/A

Kenvue has higher revenue and earnings than Swatch Group.

Dividends

Kenvue pays an annual dividend of $0.83 per share and has a dividend yield of 4.5%. Swatch Group pays an annual dividend of $0.12 per share and has a dividend yield of 1.3%. Kenvue pays out 112.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kenvue has raised its dividend for 1 consecutive years. Kenvue is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

97.6% of Kenvue shares are owned by institutional investors. 1.7% of Kenvue shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Kenvue has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Swatch Group has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Kenvue and Swatch Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kenvue	1	7	5	0	2.31
Swatch Group	4	0	0	0	1.00

Kenvue presently has a consensus target price of $24.38, suggesting a potential upside of 30.80%. Given Kenvue’s stronger consensus rating and higher possible upside, analysts plainly believe Kenvue is more favorable than Swatch Group.

Summary

Kenvue beats Swatch Group on 13 of the 15 factors compared between the two stocks.

About Kenvue

Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.

About Swatch Group

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.